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Overcoming Risk Aversion Regarding Energy Efficiency Practices through Mimetic Pressure and Financial Slack: Findings from the Moroccan Manufacturing Sector

Author

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  • Mehdi Bensouda

    (Laboratory of Research and Studies in Management, Entrepreneurship and Finance (LAREMEF), National School of Commerce and Management of Fez, Sidi Mohamed Ben Abdellah University, Fes 30050, Morocco)

  • Mimoun Benali

    (Laboratory of Research and Studies in Management, Entrepreneurship and Finance (LAREMEF), National School of Commerce and Management of Fez, Sidi Mohamed Ben Abdellah University, Fes 30050, Morocco)

Abstract

The Moroccan manufacturing sector consumes 24% of the country’s total energy production. Morocco is dealing with energy challenges related to its growing energy consumption, which has made energy efficiency a national priority. In this study, we construct a model that includes mimetic pressure and financial slack as drivers to reduce the intensity of risk aversion regarding electrical energy efficiency practices within companies. Our research model was empirically examined using survey data gathered from 193 manufacturing companies located in four Moroccan regions. Results show that risk aversion is negatively related to energy efficiency practices. Both mimetic pressure and financial slack are positively related to energy efficiency practices. Both mimetic pressure and financial slack reduce risk aversion. Mimetic pressure dampens the negative relationship between risk aversion and energy efficiency practices, while financial slack does not dampen the negative relationship between risk aversion and energy efficiency practices. This study shows the importance of mimetic pressure in reducing risk aversion regarding energy efficiency practices. Therefore, policymakers should publicize in the media companies that have gained from the adoption of energy efficiency practices and establish an award system of best energy efficiency practices in each industry. This study is an extension of the previous literature since we found that financial slack decreases the level of risk aversion, but this does not always translate into energy efficiency practices, as the previous literature assumes.

Suggested Citation

  • Mehdi Bensouda & Mimoun Benali, 2022. "Overcoming Risk Aversion Regarding Energy Efficiency Practices through Mimetic Pressure and Financial Slack: Findings from the Moroccan Manufacturing Sector," Sustainability, MDPI, vol. 14(23), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:16261-:d:994867
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    1. Mehdi Bensouda & Mimoun Benali, 2023. "From Fairly Good to Optimal Energy Efficiency Practices within the Moroccan Manufacturing Sector: Are Financial Resources Sufficient?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 478-488, May.
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